Gym group’s expansion strategy helps to pump up revenues

PureGym is continuing to flex its muscles as its site opening plans have helped to pump up its revenues.

The Leeds-headquartered chain opened 29 gyms in the first half of the year as its revenues increased 17% to £272m, and has opened another seven in the past seven weeks.

It had 582 gyms at the end of June, with 60% in the UK and 168 gyms in Denmark, 43 in Switzerland, 3 in the USA, an 16 franchise gyms in the Middle East.

Last year the low-cost gym group set the ambition of having more than 1,000 sites by 2030.

PureGym was launched in the UK in 2009 and bought by American private equity firm Leonard Green & Partners for £600m in 2017. KKR paid £300m to become a significant minority investor in December 2021.

PureGym’s chief executive Humphrey Cobbold said: “We have a clear strategy for growth built around restoring pre-covid performance across our legacy estate, consolidating our position in Denmark and continuing our expansion plans through new sites in the UK and Switzerland, and with franchise partners overseas.”

Its adjusted EBITDA – a measure of the cash profitability of the business – increased 28% to £63m.